What You Need to Know About Underground Heating Oil Tanks

Underground heating oil tanks can present serious concerns for both home buyers and sellers. While once a common feature in older homes, these tanks have become known for the potential risks they pose—especially when it comes to environmental and financial liabilities.

Why Underground Tanks Can Be a Problem

Aging underground oil tanks can leak, causing contamination of soil, groundwater, and nearby properties. These leaks are often due to:

• Corrosion from inside the tank over time
• Electrical current interference from nearby utility lines

The cost of environmental cleanup can be significant, and in some cases, legally required—making it critical to address any issues before finalizing a home sale.

What Buyers Should Do

• Have the tank professionally inspected to ensure it’s structurally sound and not leaking
• If you prefer not to use an underground tank, you may opt to:
• Shut off the underground tank
• Install an above-ground tank (often located in the basement or utility area)
• Include language in the purchase contract that addresses the condition of the tank and who is responsible for any cleanup or replacement

What Sellers Should Do

• Work with your real estate attorney to ensure the tank’s condition and history are disclosed accurately in the sales agreement
• Be prepared for buyers to request an inspection or negotiate based on the tank’s presence
• If there are known issues, consider addressing them before listing to avoid deal-breaking surprises

Final ThoughtWhether you're buying or selling, underground oil tanks require careful attention. Being proactive can prevent liability, protect your investment, and ensure a smoother real estate transaction.